Decision of the firm's vertical boundaries: Considerations on complementarity

• Main Authors: Bianca Jupiara Fortes, José Paulo de Souza
• Format: Article
• Language: English
• Published: Universidade Federal do Ceará 2020-07-01
• Series: Contextus
• Subjects: vertical integration; transaction costs; measurement costs; resource-based view; complementarity
• Online Access: http://periodicos.ufc.br/contextus/article/view/43903
• ISSN: 1678-2089; 2178-9258

This essay aimed to present as an approach guided by propositions of theoretical complementarity ofTransaction Costs Theory (TCT); Measurement Costs (MCT) and Resource-Based View (RBV), can support the understanding of the adoption of the vertical integration governance structure. Therefore, we sought to propose a theoretical scheme, based on a qualitative approach based on the concept of complementarity. It wasfound that the transaction of highly specific assets (TCT) and difficult to measure (MCT) justify vertical integration, but the theory of RBV, points out that the choice of agents also depends on the availability of capacities and resources. Thus, the formulation of this theoretical proposal seeks to contribute to the empirical analysis of the production chains considering organizational and strategic aspects.